• America needs to “get very serious about [its] Bitcoin strategy as a nation-state,” said Pompliano.
• Bitcoin is a US technology “from an ethos standpoint,” he added.
• Most of the selling pressure around BTC is from short-term holders and institutional traders likely to be positioned at a loss.

Antony Pompliano is the co-founder and passionate Bitcoin bull. He has called on the US to embrace Bitcoin.

Speaking to CNBC’s “Squawk Box” anchor Andrew Ross Sorkin, Pompliano said that the United States needs to take this step on the “off-chance, that 0. 01% that the US dollar ends not being the global reserve currency used by every single country in the world.”

The analyst referred to this outlook as a matter national security and noted that more US politicians are talking about Bitcoin adoption at a national level.

However, he says the US doesn’t seem to have a strategy on how to take initiative and become the leading destination of this transformative technology.

According to him, America would do well to be the biggest holder of Bitcoin- noting that it (BTC) is the biggest decentralised digital currency not under the control of any single entity.

About 30% of Bitcoin’s hashrate is in the US following last year’s exodus of miners from China into the country and other friendly locations. The analyst says that the US must have a strategy.

“We need to get very serious about what is our Bitcoin strategy as a nation state,” he told Sorkin during the “Squawk Box” show.

The US must take a leadership role in the future, Pompliano stated:

“Bitcoin is an American technology from an ethos standpoint. It’s about censorship resistance, it’s about free speech; it’s about self sovereignty and individual rights.”

His remarks came as markets around the world were looking to rebound from a sharp selloff that was triggered by Russia’s invasion of Ukraine. Bitcoin’s value had dipped below $35k as it looked like sellers would push it to critical support around $30,000.

Pompliano stated that Bitcoin’s price movements and sell-offs are mainly due to institutional traders and short-term investors. He suggested that these groups of BTC owners are most likely to be those selling at a loss.

Long-term holders and most people are in profit, he said, based on the realized price metric that puts the average cost basis in the mid $20,000 region.

And with Bitcoin’s bounce above $38,000 on Thursday, Pomp says a lot of the sell-off pressure might “be behind us.”